Gold stocks are looking better than the metal for the first time in more than two years, which...


Gold stocks are looking better than the metal for the first time in more than two years, which bodes well for both, Barron's Michael Kahn writes. Significant recent one-day price reversals in major gold stocks Barrick (ABX), Newmont (NEM) and Goldcorp (GG) suggests that after a long decline the bears have used up all of their energy, he says, improving their risk/reward profiles.
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Comments (10)
  • montanamark
    , contributor
    Comments (1455) | Send Message
     
    ?? NEM is red and almost cut in half from last fall's hi;
    GG is red
    14 Aug 2012, 11:21 AM Reply Like
  • MDavid
    , contributor
    Comments (16) | Send Message
     
    I think the idea is to buy low and sell high
    14 Aug 2012, 11:24 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    Yeah sure, and how to you do that?

     

    Capt. Brian
    The Lost Navigator
    15 Aug 2012, 10:23 AM Reply Like
  • Venerability
    , contributor
    Comments (3043) | Send Message
     
    Three prominent CDE insiders bought substantial new stakes OVER 19!! Not at the bottom. Over 19, within the past two days. That means the litigation is almost certainly going to go in CDE's favor. Average target on the stock is wayyyyyyyy too low. If you are not in yet, consider this one of the easiest ways to participate in higher sector prices the second half of the year.
    14 Aug 2012, 11:56 AM Reply Like
  • TDWelander
    , contributor
    Comments (624) | Send Message
     
    My investment model says always cover the downside; also known as the German model. Which means never buying a stock with a P/E over 20; and usually under 15. In this current market buying any stock with a P/E over 10 is probably ill advised. The CDE P/E is 25 and they do not pay a dividend? Try again.
    14 Aug 2012, 12:46 PM Reply Like
  • Venerability
    , contributor
    Comments (3043) | Send Message
     
    Major mine was down two quarters. Now back up.

     

    All you need to know. Earnings will be way up second half from first half.

     

    And among those buying at price over 19 was the general counsel. Most legal experts in the sector believe CDE will win its current litigation against an opportunistic claims jumper handily. Litigation likely took two points or more off the stock price while it was unresolved. Should be resolved by mid-November.

     

    I agree with you that those who don't like particular stocks should not buy them. Neither should those who don't understand them.
    14 Aug 2012, 04:39 PM Reply Like
  • TDWelander
    , contributor
    Comments (624) | Send Message
     
    Thanks. I avoid being trader. Your advice is for traders. If you will look at and provide price earnings ratios as well as the percentage
    of institutional ownership of any company stock, that is a minimum
    starting point for most real investors. Your trading mentality will likely get you into trouble. But all the best to you in any case. Oh, and I will put my knowledge of stocks and markets up against yours anywhere anytime excluding insider information of course.
    15 Aug 2012, 10:07 AM Reply Like
  • GUS100CORRINA
    , contributor
    Comments (696) | Send Message
     
    I recently took a look at stocks like AU, SLW to name just two (2) ... SLW is up over 30% from it's lows in Jun'12. In addition, NUGT's low was in the 7s and it is now 10+ ... another 30%. I would have to concur with Barrons in that there is some stabilization and relative strength is improving while the metal prices are flat to down ... in a word ... encouraging.
    14 Aug 2012, 12:05 PM Reply Like
  • Abigsoxfan
    , contributor
    Comments (1215) | Send Message
     
    Longer term I'm still bullish on gold and gold stocks primarily due to governments around the world trying to devalue their currencies. But shorter term it looks like the global economy is slowing down if not heading towards a double dip recession. That's not bullish for oil or gold. But the kicker here is possible war in Iran. If or when that happens gold should skyrocket at least in the short term. Tough call here. That's why we have markets.
    14 Aug 2012, 01:02 PM Reply Like
  • jake319
    , contributor
    Comments (105) | Send Message
     
    Well , gold reacts to food prices. Food prices will hit a up trend that may last 36 months even longer. Food production is a heavily
    Leveraged so currencies will have to devalue against gold prices.....
    14 Aug 2012, 01:06 PM Reply Like
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